BEN BAILEY (BBC).

Investors Chronicle, August, 2005

Yorkshire-based housebuilder Ben Bailey sold 360 houses in the first six months of the year, against 251 a year earlier. Unfortunately, there was barely any change in the average selling price at GBP147,200 (from GBP147,100 in 2004). This, together with higher build costs and the need to introduce more sales incentives, led to a significant increase in cost of sales to GBP34.6m from GBP25.5m. Margins suffered as a result, falling at the operating level to 17 per cent from 22.7 per cent in the same period last year.

The poor performance provided a sharp contrast to the company's upbeat outlook at the start of the year, and the change in conditions was blamed on higher interest rates and a general reduction in consumer confidence. Management's long-term strategy...

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